Gloucestershire County Council has sharply criticized the government over significant funding cuts, accusing it of using “smoke and mirrors” to obscure the real impact of the reductions. Officials say the recent Fair Funding Review has delivered an unfair and damaging blow to local finances.
Council finance officers are currently analyzing the details to provide a clear assessment, but members are already raising alarms about the severity of the cuts. Liberal Democrat Councillor Colin Hay, cabinet member for finance, condemned the government’s approach: “The Government has amalgamated grants, burying vital details in complexity to hide the extreme reduction in our funds. This is a blatant use of smoke and mirrors designed to distort the figures.”
These drastic cuts come at a time when local councils face increasing pressure, including the costly demands of local government reorganization. Liberal Democrats stress that such reductions undermine the councils’ ability to provide essential services.
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Council leader Lisa Spivey echoed these concerns, emphasizing the crucial frontline role local government plays. “We are the first line in delivering care and safety measures, and adequate funding is essential. Stripping away support weakens our ability to protect the most vulnerable in our communities. I am appalled and angered by the government’s decision and will continue working tirelessly on behalf of our residents. Gloucestershire deserves better than this short-sighted and irresponsible approach to local funding.”
The Ministry of Housing, Communities and Local Government (MHCLG) counters these claims by highlighting the forthcoming funding settlement for 2026/27, which will allocate nearly £78 billion in core spending power to local authorities in England — a 5.7% cash increase compared to the current year. Over the multi-year period, funding will rise by 15.1% in cash terms, £11bn more than 2025-26.
MHCLG maintains that the reforms aim to make funding allocation fairer, targeting resources to where they are most needed. This includes £3.4 billion in grant funding confirmed at the Spending Review 2025.
An MHCLG spokesperson stated, “We will make almost £78 billion available for council finances next year and are committed to fixing the outdated and unfair funding system we inherited so that it matches people’s needs. This includes £657 million for Gloucestershire County Council next year, enabling them to deliver the high-quality public services local people require.”